Under 45 years old
Small changes today
may make a huge difference
It’s never too early to start your retirement planning, and if you’re under 45 years old, the chances are you’ll already have a couple of small pension pots from your past employers. As your personal circumstances change, your future plans may alter, so it’s important to make sure that your pension policies are working as hard as possible.
Considerations at this age
The earlier you start saving into your pension, the easier it is to achieve your desired future lifestyle. Although retirement may seem a long time away, paying in smaller amounts over a longer period makes it easier to enjoy your lifestyle and plan for the future.
Pension policy service charges can differ between policy providers. Older policies can be inflexible, and we’ve seen annual charges in the region of 5.3% which can affect the value of your pension. A regular Pension HealthCheck may be able to reduce your service fees and increase the value of your pension.
The longer you have to build up your pension pot, the more adventurous investment strategy you could implement. While a bold approach is not suitable for everyone, potentially, more adventurous investments offer greater returns into your pension funds, but they also run the risk of losing value. As retirement may be a long time away, you may want to consider a more adventurous strategy for a longer-term approach, allowing you to potentially recover any short-term losses.
As you progress through your working career, your life stage can have a profound effect on your future retirement and pension provision. Generally, people’s plans and attitudes change as they get older and your pension policy should reflect this.
Planning for your retirement earlier can help you achieve your desired future lifestyle. Pension Works will deliver an outlook on what you could expect from your current policy(s) and if there are suitable alternative pension policies that could improve this.